Few more hurdles to overcome for CIFL depositors
View(s):For long-suffering depositors of the failed Central Investment and Finance Ltd (CIFL), finally there could be a silver lining but not without hiccups.
German investor, Ms Vandall Financial Services FA is now prepared to take over the CIFL with a Rs. 5 billion investment, but the only hitch is the delay in the Central Bank (CB) in finalising the terms and conditions of the proposed loan facility of Rs. 2.5 billion agreed earlier by the CB.
Wijaya Gunawardena, President, CIFL Depositors Association (CIFLDA) told the Business Times that the German investor is ready to step in the moment the CB indicates its terms and conditions for the loan facility. He says Vandall has also indicated that they need an assurance from all the CIFL depositors on their willingness to accept the relief offered.
The CIFLDA, in which many depositors are members, has written to all the 4,200 depositors inviting those who are not members to join in and indicate their willingness to accept the relief offered.
It has also written to the Director, CB Department of Supervision of Non-Bank Financial Institutions seeking a meeting to discuss matters further. -(QP)